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I noticed this today also and agree about how the "flagged" filter works.

I flagged some items I wanted to do yesterday. I did one or two and marked them completed. When I looked at the flagged items today (using the "flagged" filter), I expected to see only the remaining flagged items, but instead saw the completed ones as well.

It's not a big problem today, because there are only a few, but they will build up over time. I decided to work around the problem by removing the flag before I mark the action complete, but it would be nice not to have to take that extra step.